Tilaknagar Industries Ltd — Interim / Quarterly Report 2021

Aug 14, 2021

CIN: L15420PN1933PLC133303

Registered Office: P.O. Tilaknagar, Tal. Shrirampur, Dist. Ahmednagar, Maharashtra-413 720 Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra-400 020 Email: investor@tilind.com, Website: www.tilind.com, Phone: +91 22 22831716/18, Fax: +91 22 22046904

TI/OUTCOMP/21-22 August 14, 2021

BSE Limited,	National Stock Exchange of India Ltd.,
The Corporate Relationship Dept,	Exchange Plaza,
st Floor, Phiroze Jeejeebhoy Towers,1	Bandra -Kurla Complex,
Dalal Street,Mumbai –400 001	Bandra (East),Mumbai -400 051
Scrip Code: 507205	Scrip Code: TI

Dear Sir,

Sub: Intimation under Regulation 30 of the SEBI [Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors of the Company at its meeting held today i.e. August 14, 2021, has interalia considered and approved the following:

• a. Unaudited Standalone and Consolidated Financial Results of the Company for the first quarter ended June 30, 2021 along with the "Limited Review" Report of the Statutory Auditors, which were approved and taken on record by the Board of Directors.
• b. The 86th Annual General Meeting (the AGM) of the Company is scheduled to be held on Thursday, September 30, 2021 at 10.30 a.m. through Video Conferencing / Other Audio Visual Means OAVM.
• c. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from Thursday, September 23, 2021 to Thursday September 30, 2021 (both days inclusive) for the purpose of the AGM of the Company.

The Board meeting commenced at 12.25 p.m. and concluded at 2.30 p.m.

We request you to kindly take the above on your record.

Thanking you,

Yours faithfully, For Tilaknagar Industries Ltd Digitally signed by SHEKHAR RAMJEET SINGH

SHEKHAR RAMJEET SINGH DN: c=IN, o=Personal, pseudonym=9d802484a61891f05a34f8312e2d51f1f0b5d1 bb3ca1c6d5ff5afa050170df88, postalCode=400066, st=MAHARASHTRA, serialNumber=b35a0382a16a37158fe5f7b1555932b62916f d1d5ef81cb365dd31088c8a8a5c, cn=SHEKHAR RAMJEET SINGH Date: 2021.08.14 14:33:14 +05'30'

Shekhar R Singh Company Secretary

Enclosed: as above

HARSHIL SHAH & COMPANY

Chartered Accountants Phone: - 022 401 39 401 www.caharshilshah.com, E Mail :- info@caharshilshah.com

Limited Review Report on the Unaudited Quarterly Consolidated Financial Results of Tilaknagar Industries Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To the Board of Directors of Tilaknagar Industries Limited

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of Tilaknagar Industries Limited (hereinafter referred to as the "Holding Company") and its subsidiaries and Associate (collectively referred to as "the Group") for the quarter ended June 30, 2021 ("Consolidated Statement"), being submitted by the Holding Company pursuant to the requirements of Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• 1. This Consolidated Statement, which is the responsibility of the Holding Company's management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to express a conclusion on the Consolidated Statement based on our review.
• 1. We conducted our review of the Consolidated Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the Listing Regulations to the extent applicable.

1. This Consolidated Statement includes the results of Holding Company and its following Subsidiaries and Associate:

114, Dimple Aracade, Thakur Complex, Kandivali East, Mumbai 101.

	Holding Company
1	Tilaknagar Industries Ltd
	Subsidiaries:
$\overline{2}$	Prag Distillery (P) Ltd
3	Vahni Distilleries Pvt. Ltd
$\overline{\mathbf{4}}$	Kesarval Spring Distillers Pvt. Ltd
5	Punjab Expo Breweries Pvt. Ltd
6	Mykingdom Ventures Pvt. Ltd
$\overline{7}$	Studd Projects P Ltd
8	Srirampur Grains Pvt. Ltd
9	Shivprabha Sugars Ltd
	Associate:
10	Mason & Summers Marketing Services Pvt. Ltd

1. Attention is invited to the following:

$\ddot{\bullet}$

• a. The Holding Company has not carried out impairment assessment of one of the ENA plants as required by Indian Accounting Standard (Ind AS 36) 'Impairment of Assets' though there is an indication of impairment. Reference is invited to note no. 5 of the consolidated statement.
• b. The Holding Company has not recognised impairment loss on long overdue advances given to certain parties amounting to Rs. 6074.08 lakhs as required by Indian Accounting Standard (Ind AS 109) 'Financial Instruments'. Reference is invited to note no. 6 of the consolidated statement.
• c. The following paragraph in was included in the review report dated August 12, 2021 issued on the unaudited financial results of Prag Distillery (P) Ltd ("Prag"), a subsidiary company of the Holding Company issued by an Independent Firm of Chartered Accountants, is reproduced as under:
• We draw attention to note no. 5 of the Statement which states that the Company has incurred capital expenditure of Rs. 10,018.61 lakhs as at June 30, 2021 on expansion project (the Project) grouped under the head capital work in progress. Work on the said project has been suspended and has not been completed since many years.

Further the Building, Plant & Equipment of the Company has remained idle due to Plant shutdown. The Company has not tested the said project, Building, Plant and equipment (Tangible Assets) for impairment loss as per Indian Accounting Standard (Ind AS 36) 'Impairment of Assets'. In absence of sufficient appropriate audit evidence, we were unable to determine the amount of impairment in the value of project and Tangible assets.

We draw attention to note no. 6 of the statement which states that there are unsecured overdue trade receivables of Rs. 586.55 lakhs and deposits of Rs. 182.05 from Andhra Pradesh Beverage Corporation Ltd and unsecured advances given to suppliers of Rs. 210.99 lakhs which are long overdue and doubtful of recovery. The management has not considered any provision for allowance on doubtful trade receivables, deposits and advances though it is long overdue. In absence of sufficient appropriate audit evidence and balance confirmations, we are unable to verify the recoverability amount of the trade receivables, deposits and advances.

Note no. 6 and 7 of Prag as described above is reproduced as note no. 9 and 10 to the consolidated statement respectively.

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditors referred to in paragraph 10 below and except for the possible effects of the matters described in paragraph 5 above, nothing has come to our attention that causes us to believe that the accompanying Consolidated Statement prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The following paragraph in respect of material uncertainty related to going concern was included in the review report dated August 12, 2021 issued on the unaudited financial results of PunjabExpo Breweries Pvt Ltd ("Punjabexpo"), a subsidiary company of the Holding Company issued by an Independent firm of Chartered Accountants, is reproduced as under:

We draw attention to Note no. 5 of the statement which states that the Company has incurred a loss of Rs. 282.55 lakhs during the quarter and the business operations have been scaled down significantly. The Company has accumulated losses of Rs. 2174.04 lakhs and its net worth has been fully eroded as at June 30, 2021. These conditions indicate that a material uncertainty exists that may cast a significant doubt about the Company's ability to continue as a going concern. However, the financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note. Our conclusion is not modified in respect of this matter.

Note no. 5 of Punjabexpo as described above is reproduced as note no. 7 to the consolidated statement. Our conclusion is not modified in respect of this matter.

1. The following paragraph in respect of Material uncertainty related to going concern was included in the review report dated August 12, 2021 issued on the unaudited financial results of Prag Distillery (P) Ltd ("Prag"), a subsidiary company of the Holding Company issued by an Independent firm of Chartered Accountants, is reproduced as under :

We draw attention to Note no. 4 the statement which states that the Company has been referred to National Company Law Tribunal for Corporate Insolvency Resolution Process (CIRP) under the provisions of Insolvency and Bankruptcy Code 2016 (the Code) and the Board of Directors of the Company have been suspended. Further the Company has incurred net loss during the quarter ended June 30, 2021 and as of that date the business has ceased completely and there are defaults in repayment of bank loans. The uncertainty of the outcome of the NCLT proceedings and other events as mentioned above, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Note no. 4 of Prag as described above is reproduced as note no. 8 to the consolidated statement. Our conclusion is not modified in respect of this matter.

• 1. The following Emphasis of matter was included in the audit report dated August 12. 2021 issued on the Financial Statements of Prag Distillery (P) Ltd ("Prag"), a subsidiary company of the Holding Company issued by an Independent firm of Chartered Accountants, is reproduced as under:
  • We draw attention to note no. 7 of the statement regarding the settlement agreement and the proposed resolution of the pending litigation between the Company and DCB Bank.

Our conclusion is not modified in respect of this matter.

• Note no. 7 of Prag as described above is reproduced as note no. 11 to the consolidated statement. Our conclusion is not modified in respect of this matter.
• $10. a.$ We did not review the interim financial statements/ information of 8 subsidiaries included in the consolidated whose Ind AS financial statements include total revenue of Rs. 84.77 lakhs and total loss of Rs. 380.29 lakhs including other comprehensive income for the quarter ended June 30, 2021 as considered in the consolidated annual financial results. These interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Management, and our conclusion on the Consolidated statement insofar as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of such auditors and the procedure performed by us as stated above. Our conclusion is not modified in respect of the above matter.

$\mathbf b$ . The Consolidated statement also include Group's share of loss /profit Rs Nil for the quarter ended June 30, 2021 as considered in the Consolidated statement in

respect of 1 Associate whose financial results have not been audited by us. The Financial information of the Associate is not available and the Group has provided its share of loss to the extent of the Investment. According to the information and explanation given to us by the management this financial information are not material to the Group.

Our conclusion is not modified in respect of the above matter.

1. Attention is drawn to the fact that the figures for the quarter ended March 31, 2021 as reported in these consolidated financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the quarter ended December 31, 2020 which were subject to limited review.

۱

Place: Mumbai Date: August 14, 2021 ICAI UDIN: 21124146AAAACM7406

TILAKNAGAR INDUSTRIES LTD. (CIN: L15420PN1933PLC133303)

Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra - 400 020

Regd.Office : P.O. Tilaknagar, Tal. Shrirampur, Dist. Ahmednagar, Maharashtra - 413 720

Email: investor@tilind.com; Website: www.tilind.com; Phone: +91 22 22831716/18; Fax: +91 22 22046904

					(Rs. in Lacs except EPS)
	Statement of Consolidated Unaudited Financial Results for the Quarter ended June 30, 2021
	Particulars	Quarter ended			Year ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		Unaudited	Audited	Unaudited	Audited
I	Revenue from operations	32,413.84			44,179.16 18,542.75 1,41,836.42
II	Other Income	19.70	734.27	30.63	1,141.95
	III Total Income (I + II)	32,433.54			44,913.43 18,573.38 1,42,978.37
	IV Expenses
	(a) Cost of materials consumed	6,379.76	10,291.11	3,325.33	29,132.08
	(b) Purchases of stock-in-trade	-	-	-	-
	(c) Changes in inventories of finished goods, stock-in-trade and work-in-progress	(444.28)	399.65	(876.89)	(1,393.75)
	(d) Excise duty	18,883.38		24,945.13 12,904.56	86,961.34
	(e) Employee benefits expense	713.34	441.32	689.41	2,515.56
	(f)Finance costs	1,500.79	1,870.79	1,723.66	7,096.50
	(g) Depreciation and amortization expense	819.27	810.47	830.89	3,312.43
	(h) Other expenses	4,544.20	7,078.07	2,253.13	19,212.09
	Total expenses	32,396.46			45,836.54 20,850.09 1,46,836.25
V	Profit/(Loss) before exceptional items and tax (III-IV)	37.08		(923.11) (2,276.71)	(3,857.88)
	VI Exceptional items			-	-
	VII Profit/(Loss) Before Tax (V+/-VI)	37.08		(923.11) (2,276.71)	(3,857.88)
	VIII Tax Expense
	(a)Current tax	-	-	-	-
	(b)Taxes for Earlier Years	-	(20.79)	3.21	(17.58)
	(c)Deferred tax	-	-	-	-
	Total tax expense	-	(20.79)	3.21	(17.58)
	IX Profit/(Loss) for the period before share of Profit/(Loss) of associate (VII-VIII)	37.08		(902.32) (2,279.92)	(3,840.30)
X	Share of Profit/(Loss) of associate	-	-	-	-
	XI Profit/(Loss) for the period (IX+X)	37.08		(902.32) (2,279.92)	(3,840.30)
	XII Other Comprehensive Income/(Loss)
	(a) Items that will not be reclassified to Profit & Loss
	(i) Remeasurement gain /(loss) in respect of the defined benefit plans	(8.63)	(26.08)	(3.46)	(34.50)
	(ii) Tax on above	-	-	-	-
	(b) Items that will be reclassified to Profit & Loss	-	-	-	-
	Total Other Comprehensive Income/(Loss) for the period [(a) +(b)]	(8.63)	(26.08)	(3.46)	(34.50)
	XIII Total Comprehensive Income/(Loss) for the period (XI+XII)	28.45		(928.40) (2,283.38)	(3,874.80)
	XIV Profit/Loss for the period attributable to
	(a) Owners of the Company	37.08		(902.32) (2,279.92)	(3,840.30)
	(b) Non-Controlling Interests	-	-	-	-
	XV Other Comprehensive Income/(Loss) for the period attributable to
	(a) Owners of the Company	(8.63)	(26.08)	(3.46)	(34.50)
	(b) Non-Controlling Interests	-	-	-	-
	XVI Total Comprehensive Income/(Loss) for the period attributable to
	(a) Owners of the Company	28.45		(928.40) (2,283.38)	(3,874.80)
	(b) Non-Controlling Interests	-	-	-	-
	XVII Paid-up equity share capital (Face value of Rs. 10/- per Share)	13,933.84	12,543.46	12,513.38	12,543.46
	XVIII Reserves as per Balance Sheet				(18,115.30)
	XIX Earnings Per Equity Share of Rs. 10 /- each (not annualized)
	(a) Basic (Rs.)	0.03	(0.72)	(1.82)	(3.07)
	(b) Diluted (Rs.)	0.03	(0.72)	(1.82)	(3.07)

AMIT DAHA NUKAR Digitally signed by AMIT DAHANUKAR DN: c=IN, o=Personal, pseudonym=9d690ea46b05 791c287c58b7144f8ef87bdb bb57c927012b00e87728016 cf6c0, postalCode=400006, st=MAHARASHTRA, serialNumber=f1afeb51b3ad 8b777849797f544ae02b0c0a 2304d947bd56ffb66a1e01df 523f, cn=AMIT DAHANUKAR Date: 2021.08.14 14:30:56 +05'30'

Notes :

• 1 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its Meeting held on August 14, 2021. The Statutory Auditors have expressed qualified audit opinion.
• 2 The above results have been prepared in accordance with Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
• 3 The above results have been prepared by the Company in accordance with IND-AS 110: Consolidated Financial Statements and IND-AS 28: Accounting for Investments in Associate in Consolidated Financial Statements prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies.
• 4 The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor (IMFL) and its related products, which constitute a single business segment as per IND-AS 108: Operating Segments. Accordingly, disclosure in accordance with the provisions of Circular issued by the SEBI on July 05, 2016 is not applicable.
• 5 The Company had applied to the State government authorities for dual feed permission for manufacture of ENA through molasses as well as grain at one of its ENA Plants. Permission has been received for operating the fermentation section till March 03, 2022. It is expected that permission for operating the distillation section also will be received soon. In view of this, the management believes that there is no impairment in value of its ENA Plant and hence the recoverable amount of the ENA Plant is not required to be estimated.
• 6 In lieu of advances given to certain body corporates amounting to Rs. 6,074.08 lacs, the Company had received land from their holding company. The land received has been registered in the name of the Company. The advances have not been adjusted against the dues to the said holding company pending completion of the merger formalities of the said body corporates with their holding company. In view of this, the management believes that no provision is considered necessary in the books of accounts.
• 7 The net worth of PunjabExpo Breweries Private Limited ("PunjabExpo"), a subsidiary of TI, has been eroded and has incurred net loss during the current quarter. However, the parent company is actively exploring the possibility of entering into northern markets where PunjabExpo will be one of the major sources of supply. It is also in talks with other brand owners to enter into bottling arrangements for the said brand owners. This would significantly improve the capacity utilisation and have favourable impact on the profitability of PunjabExpo. Moreover, PunjabExpo is also in the process of rationalization of its administrative overheads. In order to repose faith in Punjabexpo, TI has subscribed to rights issue of 69,99,300 shares of Rs 10 each in the month of April 2021 and 89,99,100 shares of Rs 10 each in the month of June 2021 of Punjabexpo thereby further improving the net worth of the company. The Board of Directors have assessed the above conditions and indicators and have come to the conclusion that no material uncertainty exists that may cast significant doubt on the PunjabExpo's ability to continue as a going concern taking into account the plans management has put in place and the other mitigating factors described above. Hence, the accounts of PunjabExpo have been prepared on a going concern basis.
• 8 The National Company Law Tribunal ("NCLT") has ordered for liquidation of Prag Distillery (P) Ltd. ("Prag"), wholly owned subsidiary of the Company, vide its order passed in MA bearing no. 309/2018 in CP1067/ 2017 on July 26, 2018, as a going concern. A liquidator has been appointed to manage the affairs of Prag and complete the liquidation process. The Holding Company has submitted a formal proposal to the two financial lenders for full and final settlement of all their claims. The settlement agreement with Standard Chartered Bank, one of the financial lenders for USD 22,50,000 has been entered and a sum of USD 11,00,000 has been paid to them. The agreement with DCB Bank has also been entered in the month of July 2021 wherein DCB Bank has agreed to accept a sum of Rs.2,252.78 lacs towards full and final settlement of its dues. Hence, the accounts of Prag have been prepared on a going concern basis.
• 9 The National Company Law Tribunal ("NCLT") has ordered for liquidation of Prag Distillery (P) Ltd. ("Prag"), wholly owned subsidiary of the Company, vide its order passed in MA bearing no. 309/2018 in CP1067/ 2017 on July 26, 2018, as a going concern. A liquidator has been appointed to manage the affairs of Prag and complete the liquidation process. The Holding Company has submitted a formal proposal to the two financial lenders for full and final settlement of all their claims. The settlement agreement with Standard Chartered Bank, one of the financial lenders for USD 22,50,000 has been entered and a sum of USD 11,00,000 has been paid to them. The agreement with DCB Bank has also been entered in the month of July 2021 wherein DCB Bank has agreed to accept a sum of Rs. 2,252.78 lacs towards full and final settlement of its dues.The impairment, if any, of the project undertaken by Prag in earlier years and of the existing Building, Plant and Equipment of Prag will be considered on completion of the liquidation process / final settlement as the case may be, as the recoverable value is not currently ascertainable.
• 10 Trade Receivables of Prag Distillery (P) Ltd, wholly owned subsidiary of the Company ("Prag"), include Rs 586.55 lacs ( P.Y. Rs 586.55 lacs) receivable from Andhra Pradesh Beverage Corporation Ltd. towards sale of IMFL made by Prag in FY 2018-2019 and FY 2019-2020. Prag, through the Liquidator is in the process of filing an application with National Company Law Tribunal for approval to initiate legal action against Andhra Pradesh Beverage Corporation Ltd. for recovery of the same. The Management believes that no provision for doubtful debts is required to be made against this receivable as the amount is expected to be received. The Earnest Money Deposit of Rs 182.05 lacs (P.Y.Rs 182.05 lacs) and the advances to suppliers of Rs 210.99 lacs (P.Y. Rs 210.99 lacs) are mainly given for the expansion of Prag capacity and the same would be capitalised as soon as the entire licence fees are paid and the plant become operational at expanded capacity.
• 11 Prag Distillery (P) Ltd has filed an application with the Hon'ble National Company Law Tribunal seeking reversal of interest debited by DCB Bank during the Corporate Insolvency Resolution Process. The Hon'ble National Company Law Tribunal had directed DCB Bank to reverse the interest debited. The said order has been appealed against by DCB bank with the Hon'ble National Company Law Appellate Tribunal and later with the Hon'ble Supreme Court of India, where the matter is currently pending. Prag has also filed a Miscellaneous Application to the Hon'ble National Company Law Tribunal against DCB Bank Ltd., seeking removal of the lien marked on the bank account with DCB Bank and an order declaring the realisation / enforcement of security interest of DCB Bank Ltd. as null and void. The said application is pending before the National Company Law Tribunal for further arguments.The agreement with DCB Bank has also been entered in the month of July 2021 wherein DCB Bank has agreed to accept a sum of Rs. 2,252.78 lacs towards full and final settlement of its dues.

12 Impact of COVID-19:

The COVID-19 pandemic has brought economies, businesses and lives around the world to a standstill, and our country is no exception. Based on the directives and advisories issued by central and state governments and other relevant authorities during the lockdown, our operations at factories / states were affected partially. Considering the unprecedented and ever evolving situation, the Group had made assessment of recoverability and carrying value of its assets consisting of tangible assets, inventories and other current assets as at June 30, 2021 and made appropriate provisions. However, the impact assessment of COVID-19 is a continuous process, given the uncertainties associated with its nature and duration. The Group will continue to closely monitor any material changes to future economic conditions. The Management has taken into account the impact of COVID-19 on the business for the foreseeable future and have concluded that the Group has sufficient resources to continue as a going concern.

• 13 The Standlone and Consolidated unaudited financial results of the Company for the quarter ended June 30, 21021 are available on the Company's website (www.tilind.com) and on the website of BSE (www.bseindia.com) and NSE (www.nseindia.com).
• 14 Figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the full financial year and the published year-to-date figures up to the third quarter of the financial year, as adjusted for certain regroupings/ reclassifications.
• 15 The previous period figures have been regrouped and reclassified wherever necessary.

On behalf of the Board For Tilaknagar Industries Ltd. Digitally signed by AMIT DAHANUKAR DN: c=IN, o=Personal,

AMIT	LIGILARY MODIG DV AWLL LIATIANUMARDN: c=IN, o=Personal.pseudonym=9d690ea46b05791c287c5t
DAHANUKA	b7144BeB7bdbbb57c927012b00e87728016cf6c0.postalCode=400006.st-MAHARASHTRA.senialNumber-f1afeb51b3ad8b7778497
R	97f544ae02b0c0a2304d947bd56ffb66ae01df523f.cn=AMIT DAHANUKARData: 3631.09.14.14.21.26 (4630)

Date: 2021.08.14 14:31:30 +05'30'

Place: Mumbai Date : August 14, 2021

DIN: 00305636 Amit Dahanukar Chairman & Managing Director

HARSHIL SHAH & COMPANY

Chartered Accountants

Phone :- 022 401 39 401 www.caharshilshah.com, E Mail :- info@caharshilshah.com

Limited Review Report on the Unaudited Quarterly Standalone Financial Results of Tilaknagar Industries Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To the Board of Directors of Tilaknagar Industries Limited

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Tilaknagar Industries Limited ("the Company") for the quarter ended June 30, 2021 ("the Statement"), being submitted by the company pursuant to the requirement of Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• 1. This Statement, which is the responsibility of the Company's management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, as amended read with relevant rues issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

• 1. Attention is invited to the following:
  • a. The Company has not carried out impairment analysis of one of the ENA plants as required by Indian Accounting Standard (Ind AS 36) 'Impairment of Assets' though there is an indication of impairment. Reference is invited to note no. 4 of the standalone statement.
  • b. The company has not recognised provision for impairment of long overdue advances given to certain parties amounting to Rs. 6074.08 lakhs as required by Indian Accounting Standard (Ind AS 109) 'Financial Instruments'. Reference is invited to note no. 5 of the standalone statement.

114, Dimple Aracade, Thakur Complex, Kandivali East, Mumbai 101.

• c. The National Company Law Tribunal ("NCLT") has ordered for liquidation of Prag Distillery (P) Ltd ("Prag") wholly owned subsidiary of the Company, vide its order No. MA 309/2018 in CP1067/ 2017 dated July 26, 2018. However, the Company has not made impairment provision for equity investment of Rs. 1543.35 lakhs in Prag as required by Indian Accounting Standard (Ind AS 36) 'Impairment of assets'. Reference is invited to note no. 6 of the standalone statement.
• d. PunjabExpo Breweries Private Limited ("Punjabexpo") wholly owned subsidiary of the Company, has incurred loss during the year and due to accumulated losses, the net worth is negative. Despite adverse financial condition, the Management has not recognised provision for impairment in equity investment of Rs. 2680.24 lakhs and advances given of Rs. 2945.87 lakhs to Punjabexpo as required by Indian Accounting Standard (Ind AS 36) 'Impairment of assets'. Reference is invited to note no. 7 of the standalone statement.

The above matters were also qualified in our report on the audited financial results for the quarter and year ended March 31, 2021.

• 1. Based on our review conducted and procedures performed as stated above, except for the possible effects for the matters described in paragraph 4 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other recognised accounting practices and policies generally accepted in India has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. Attention is drawn to the fact that the figures for the quarter ended March 31, 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the quarter ended December 31, 2020 which were subject to limited review.

For Harshil Shah & Company Chartered Accountants ICAI Firm Reg.\No.141179W

Harshil SI Partner Membership No. 124146

Place: Mumbai Date: August 14, 2021 ICAI UDIN: 21124146AAAACL8128

TILAKNAGAR INDUSTRIES LTD. (CIN: L15420PN1933PLC133303)

Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra - 400 020

Regd.Office : P.O. Tilaknagar, Tal. Shrirampur, Dist. Ahmednagar, Maharashtra - 413 720

Email: investor@tilind.com; Website: www.tilind.com; Phone: +91 22 22831716/18; Fax: +91 22 22046904

	(Rs. in Lacs except EPS)
	Statement of Standalone Unaudited Financial Results for the Quarter ended June 30, 2021
	ParticularsQuarter ended			Year ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		Unaudited	Audited	Unaudited	Audited
I	Revenue from Operations	32,413.84	44,179.16	18,542.75	1,41,836.42
II	Other Income	16.60	743.56	27.43	1,170.00
III	Total Income (I + II)	32,430.44	44,922.72	18,570.18	1,43,006.42
IV	Expenses
	(a)Cost of materials consumed	6,379.76	10,290.88	3,325.33	29,132.08
	(b)Purchases of stock-in-trade	-	-	-	-
	(c)Changes in inventories of finished goods, stock-in-trade and work-in-progress	(444.28)	399.89	(876.89)	(1,393.75)
	(d)Excise duty	18,883.38	24,945.13	12,904.56	86,961.34
	(e)Employee benefits expense	455.33	218.85	445.07	1,554.84
	(f)Finance costs	1,423.15	1,780.37	1,621.33	6,540.05
	(g)Depreciation and amortization expense	779.90	772.76	786.86	3,141.28
	(h)Other expenses	4,538.64	7,781.70	2,261.42	19,995.75
	Total Expenses	32,015.88	46,189.58	20,467.68	1,45,931.59
V	Profit/(Loss) Before Exceptional Items And Tax (III-IV)	414.56		(1,266.86) (1,897.50)	(2,925.17)
VI	Exceptional Items			-	-
	VII Profit/(Loss) Before Tax (V+/-VI)	414.56		(1,266.86) (1,897.50)	(2,925.17)
	VIII Tax Expense
	(a)Current tax	-	-	-	-
	(b)Taxes for Earlier Years	-	(47.29)	1.33	(45.96)
	(c)Deferred tax	-	-	-	-
	Total Tax Expense	-	(47.29)	1.33	(45.96)
IX	Profit/(Loss) For The Period (VII-VIII)	414.56		(1,219.57) (1,898.83)	(2,879.21)
X	Other Comprehensive Income/(Loss)
	(a) Items that will not be reclassified to Profit & Loss
	(i) Remeasurement gain /(loss) in respect of the defined benefit plans	(5.79)	(12.59)	(3.52)	(23.16)
	(ii) Deferred tax on remeasurement gain /(loss) in respect of defined benefit plans
	(b) Items that will be reclassified to Profit & Loss
	Total Other Comprehensive Income/(Loss) For The Period [(a) +(b)]	(5.79)	(12.59)	(3.52)	(23.16)
XI	Total Comprehensive Income/(Loss) For The Period (IX+X)	408.77		(1,232.16) (1,902.35)	(2,902.37)
	XII Paid-up Equity Share Capital (Face value of Rs. 10/- per Share)	13,933.84	12,543.46	12,513.38	12,543.46
	XIII Reserves as per Balance Sheet				(17,780.24)
	XIV Earnings Per Equity Share of Rs. 10 /- Each (not annualized)
	(a) Basic (Rs.)	0.31	(0.97)	(1.52)	(2.30)
	(b) Diluted (Rs.)	0.30	(0.97)	(1.52)	(2.30)

Notes :

• 1 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its Meeting held on August 14, 2021. The Statutory Auditors have expressed qualified audit opinion.
• 2 The above results have been prepared in accordance with Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
• 3 The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor (IMFL) and its related products, which constitute a single business segment as per IND-AS 108: Operating Segments. Accordingly, disclosure in accordance with the provisions of Circular issued by the SEBI on July 05, 2016 is not applicable.
• 4 The Company had applied to the State government authorities for dual feed permission for manufacture of ENA through molasses as well as grain at one of its ENA Plants. Permission has been received for operating the fermentation section till March 03, 2022. It is expected that permission for operating the distillation section also will be received soon. In view of this, the management believes that there is no impairment in value of its ENA Plant and hence the recoverable amount of the ENA Plant is not required to be estimated.
• 5 In lieu of advances given to certain body corporates amounting to Rs. 6,074.08 lacs, the Company had received land from their holding company. The land received has been registered in the name of the Company. The advances have not been adjusted against the dues to the said holding company pending completion of the merger formalities of the said body corporates with their holding company. In view of this, the management believes that no provision is considered necessary in the books of accounts.
• 6 The National Company Law Tribunal ("NCLT") has ordered for liquidation of Prag Distillery (P) Ltd. ("Prag"), wholly owned subsidiary of the Company, vide its order passed in MA bearing no. 309/2018 in CP1067/ 2017 on July 26, 2018, as a going concern. A liquidator has been appointed to manage the affairs of Prag and complete the liquidation process. The Holding Company has submitted a formal proposal to the two financial lenders for full and final settlement of all their claims. The settlement agreement with Standard Chartered Bank, one of the financial lenders for USD 22,50,000 has been entered and a sum of USD 11,00,000 has been paid to them. The agreement with DCB Bank has also been entered in the month of July 2021 wherein DCB Bank has agreed to accept a sum of Rs.2,252.78 lacs towards full and final settlement of its dues. The impairment, if any, of the equity investment in Prag will be considered on completion of the liquidation process/ final settlement as the case may be.
• 7 The net worth of PunjabExpo Breweries Private Limited ("PunjabExpo"), a subsidiary of TI, has been eroded and has incurred net loss during the current quarter. However, the parent company is actively exploring the possibility of entering into northern markets where PunjabExpo will be one of the major sources of supply. It is also in talks with other brand owners to enter into bottling arrangements for the said brand owners. This would significantly improve the capacity utilisation and have favourable impact on the profitability of PunjabExpo. Moreover, PunjabExpo is also in the process of rationalization of its administrative overheads. In order to repose faith in Punjabexpo, TI has subscribed to rights issue of 69,99,300 shares of Rs 10 each in the month of April 2021 and 89,99,100 shares of Rs 10 each in the month of June 2021 of Punjabexpo thereby further improving the net worth of the company. The Board of Directors have assessed the above conditions and indicators and have come to the conclusion that no material uncertainty exists that may cast significant doubt on the PunjabExpo's ability to continue as a going concern taking into account the plans management has put in place and the other mitigating factors described above. Hence, the management believes that no provision for impairment in equity investment and loans & advances given is required.
• 8 Impact of COVID-19:

The COVID-19 pandemic has brought economies, businesses and lives around the world to a standstill, and our country is no exception. Based on the directives and advisories issued by central and state governments and other relevant authorities during the lockdown, our operations at factories / states were affected partially. Considering the unprecedented and ever evolving situation, the Company had made assessment of recoverability and carrying value of its assets consisting of tangible assets, inventories and other current assets as at June 30, 2021 and made appropriate provisions. However, the impact assessment of COVID-19 is a continuous process, given the uncertainties associated with its nature and duration. The Company will continue to closely monitor any material changes to future economic conditions. The Management has taken into account the impact of COVID-19 on the business for the foreseeable future and have concluded that the Company has sufficient resources to continue as a going concern.

• 9 Figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the full financial year and the published yearto-date figures up to the third quarter of the financial year, as adjusted for certain regroupings/ reclassifications.
• 10 The previous period figures have been regrouped and reclassified wherever necessary.

On behalf of the Board For Tilaknagar Industries Ltd.

AMIT DAHANUK AR Digitally signed by AMIT DAHANUKAR DN: c=IN, o=Personal, pseudonym=9d690ea46b05791c287c5 8b7144f8ef87bdbbb57c927012b00e87 728016cf6c0, postalCode=400006, st=MAHARASHTRA, serialNumber=f1afeb51b3ad8b777849 797f544ae02b0c0a2304d947bd56ffb66 a1e01df523f, cn=AMIT DAHANUKAR Date: 2021.08.14 14:32:25 +05'30'

Amit Dahanukar Chairman & Managing Director (DIN: 00305636)

Place : Mumbai Date : August 14, 2021